Renewables save 57 billion dollars worldwide

In 2024, renewables saved the world $57 billion in fossil fuel costs . This is according to a new report from the International Renewable Energy Agency (IRENA) , " Renewable Power Generation Costs in 2024. " According to the report, thanks to the new capacity installed last year (582 gigawatts), 91% of new plants powered by green sources were more cost-effective than any fossil fuel alternative.

The Agency's data speaks for itself. In 2024, solar photovoltaic was on average 41% cheaper than the cheapest fossil fuel, while onshore wind achieved a 53% advantage. Onshore wind remains the most competitive source for new electricity generation, with an average cost of $0.034/kWh, followed by solar at $0.043/kWh.

"New renewables also outperform fossil fuels in terms of cost, offering a clear path to sustainable and secure energy," said Francesco La Camera, Director-General of IRENA . According to estimates, considering all active installations, up to $467 billion in fossil fuel spending would have been avoided in 2024.

In addition to economic competitiveness, renewables offer structural advantages that make them increasingly central to global energy security : they reduce dependence on international fuel markets, stabilize prices, and strengthen the resilience of electricity systems.

Despite progress, IRENA warns of risks that could slow the transition . Geopolitical tensions, tariffs on critical components, shortages of raw materials, and supply chain bottlenecks, particularly in China, are creating cost pressures. In Europe and North America, the main burdens are delays in authorizations, limited electricity grid capacity, and higher system balancing costs.

Conversely, regions such as Asia , Africa , and South America —characterized by strong renewable potential and faster rates of technological learning—could see accelerated cost reductions. In many emerging economies, however, the cost of capital remains a key obstacle. In Africa, for example, onshore wind has recorded costs similar to those in Europe ($0.052/kWh), but with a very different financial structure: while in Europe projects are driven by capital investment, in Africa the burden of financing costs—due to interest rates of up to 12%—is much higher.

The report also emphasizes that instruments such as power purchase agreements (PPAs) and stable remuneration rules are essential for attracting capital and reducing risks. Conversely, an uncertain regulatory environment or opaque procurement procedures discourage investors.

Another critical issue is the integration of renewables into the grid , hampered by connection bottlenecks, slow approvals, and high local supply chain costs. This is a crucial challenge in G20 and developing countries, where the grid often cannot keep pace with growing demand and the expansion of renewables.

Innovation beyond the generational threshold can help with the transition. Between 2010 and 2024, the cost of battery storage systems (BESS) dropped by 93%, reaching $192/kWh for utility-scale systems. This is thanks to increased production, more efficient materials, and optimized processes.

New projects increasingly combine solar, wind, and battery power , while digital technologies —including artificial intelligence —improve asset efficiency and grid flexibility. However, in emerging economies, digital infrastructure and modern grids remain insufficient, limiting the effective integration of renewables.

UN Secretary-General António Guterres summed up the challenge and opportunity: "Clean energy is a smart economic choice—and the world is following the money. Renewables are growing, the fossil fuel era is collapsing. But leaders must remove obstacles, build trust, and unlock finance and investment."